Question: loan? Include the cash flow diagram in your solution. 2.2. (2.5 Pts) To purchase a new skidsteer, you borrow $45,000. The bank offers you an

loan? Include the cash flow diagram in your solution. 2.2. (2.5 Pts) To purchase a new skidsteer, you borrow $45,000. The bank offers you an interest rate of 3% compounded monthly. You take out a 7 year loan and make payments monthly. What is the total amount that you will pay over the life of the loan? Include the cash flow diagram in your solution. 2.3. (5 Pts) You have a need to use a small excavator over the next 7 years and are given the following options: A. Purchase the excavator for $110,000. Sell it in 7 years for $20,000. B. Lease the excavator for $1,300/month, making payments at the end of each month and return in at the end of the 7 years. If your MARR is 5%, which is the more economical option? Include the cash flow diagrams and compare the Present Value of each option in your solution

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